Based on a good first half of the year and continued positive development, cBrain stated in connection with the quarterly announcement for Q3 that the company, as part of the company's long-term growth plan, has now advanced and begun the implementation of a number of new strategic measures.
As part of the expanded growth plan, cBrain will increasingly make it possible for customers and external consultants to perform consulting tasks that cBrain currently undertakes. This affects both cBrain's consulting revenue and the associated costs.
cBrain welcomes the positive development which supports the expanded strategy. At the same time, it gives rise to an upward adjustment of expectations for earnings as well as a clarification of expectations for revenue.
For the financial year 2022, cBrain announced at the beginning of the year an expected revenue growth of 20-25%. This is now specified to an expected revenue growth of 20-22%.
For the financial year 2022, cBrain announced at the beginning of the year earnings before tax (EBT) of 15-20%, and in August the expectations for earnings before tax (EBT) were revised upward to 18-22%. This is now being adjusted upwards to an expected earnings before tax (EBT) of at least 22%.
cBrain has enjoyed an average revenue growth of 23% and an average annual earnings before tax (EBT) of 18% in the past 3 financial years (2019-2021). At the same time, cBrain has succeeded in increasing the export share to 24% in 2021. The progress is based on organic growth and financed without loans, which means that cBrain has great financial freedom and is continuously building a solid cash reserve.
Based on the positive results, cBrain is in the process of expanding its long-term international growth plan. The two central elements in the expanded plan, which covers the period 2023-2025, are an increased focus on F2 climate software and the establishment of a partner channel.
The revised strategic plan includes both organizational and product related measures, including building a dedicated unit responsible for developing cBrain's business as an international supplier of climate software.
cBrain can, as a supplier of climate software for authorities, directly contribute to the global fight against climate change. At the same time, cBrain's rapidly growing library of climate solutions makes it possible to enter into dialogues with authorities across more and more countries, which is why climate software is expected to become an accelerator for further exports.
As part of the plan, it is furthermore cBrain's goal to increase growth without it requiring a corresponding increase in the number of employees. This goal is achieved i.a. in that customers themselves, or with the help of external consultants, take over a number of the consulting tasks that cBrain carries out today.
cBrain calls this "F2 for Partners", and it is cBrain's plan to continuously release F2 tools, which substantiate that an increasingly large part of the tasks related to configuring and implementing F2 can be handled by the customers themselves or by external consultants.
It is expected, as a result of the partner strategy, that cBrain's consulting revenue will in the future form a smaller part of the total revenue. On the other hand, the partner strategy is expected to be able to accelerate software turnover in the long term, both in the form of licenses and subscriptions, because the strategy will make it possible to supply more solutions.
Specifically, the advancement of the new initiatives means that cBrain has employed fewer consultants in 2022 than originally planned, while some tasks have been taken over by customers and external consultants. This affects the expectations for both the consulting revenue and the associated costs in the financial statement for 2022.
Inquiries regarding this notice may be directed to
Ejvind Jørgensen, CFO, cBrain A/S, ir@cbrain.com, +45 2594 4973